Increased bulk cargo volumes have driven a sharp improvement in South Port’s financial performance for the first half of the 2025 financial year, as the NZX-listed company reports a near-doubling of profit.
The Bluff-based port posted a net profit after tax (NPAT) of $5.76 million for the six months to December 31, up from $3.03 million in the same period last year.
In contrast to the uncertain trading conditions of the previous year, the port experienced volume growth across most key commodity imports and exports.
Cargo rebound
The company points to increased demand for supplementary feed imports due to a wet spring in the southern region, a rebound in fertiliser imports, and strengthening forestry exports for its boosted results.
The forestry sector showed “signs of recovery” with exports of both logs up 31,000 tonnes and woodchips up 59,000 tonnes.
However, the temporary closure of a potline at New Zealand Aluminium Smelters (NZAS) impacted alumina and aluminium volumes, which fell 53,000 tonnes and 34,000 tonnes, respectively.
Despite this, total cargo activity rose to 1.69 million tonnes, a 13.6% increase on the 1.49 million tonnes recorded in the prior interim period.
In October, the port company declared a 10.7m high tide draft after successfully completing Project Kia Whakaū, which deepened Bluff’s entrance channel, swinging basin, and berth pockets.
The project has delivered “a number of increased efficiencies in the supply chain,” the company says.
Outlook
Based on current forecasts, South Port expects full-year earnings to exceed the upper end of the previously indicated range of $9.3m to $10.3m.
The company is also investing in infrastructure upgrades, including sealing a two-hectare area at the western tip of the Island Harbour for wind farm equipment storage.
Equipment for stage two of Mercury Energy’s Kaiwera Downs wind farm, east of Gore, is expected to be imported through Bluff in late 2025.
Shareholders will receive an interim dividend of 7.5 cents per share.
